this is a scenario planning excercise. Firstly define the industry you
think F1 teams are in. Remember this industry is dependent on other
impinding industries. This is a case where the industry actually
depends on other industries and the strategic success of Formula 1 may
well have some dependence on the success of those other industries and
vice versa. Who are the main consumers of Formula 1 products? How are
they going? Is this an industry where the players are highly
differenciated?etc Address the objectives above, making any relevant
notes for later consideration..
Answer theese questions:
1. We answer the question: " what industry ( or industries?) is F1
in?"...this way...
2. The key substitute products or services for current products or
services are:
To help you answer this, you might decide to plot current strategic
group strategies on a map of the industry to find gaps. ( spaces,
which allow a firm to move in a particular direction, if it is
attractive for them to do so).
( REMEMBER you are thinking about the strategic significance of this-
so must indentify appropriate ways to determine and analyse the
strategic spaces .)
(You must map to anything you feel is appropriate! Maybe the cost/
differentiation matrix is appropriate? (E.g. Geographic coverage on
the Y- axis and Group strategies on the X -axis)
undertake industry scenario analysis of the formula 1 case study
spin-off ideas for strategy development in the industry
must also add to update the information in the case wherever you can
E.g. formula 1 Team websites for a start. There are many other places
where you can gain information on for example industry demographics,
financial reports, growth rates, political, technological and legal
issues etc ( given on the web or otherwise but every source of
material should be properly refrenced)
3. what are the key competencies required in the industry?
4. What key resources are required in the industry?
5. Average rough growth rates and profitablility of firms in the
industry is...
6. Ferrari, McLaren and Williams performance, compared to each other
and the industry average, over a three-year period is,.....( Remember
this is a business assignment - not necessarily their performance on
the track, although this is clearly related.)
7. Plot or map the industry forces ( e.g. using force field analysis,
5 force model, 7 force model or any other model you choose) for the
segments of the industry ( industries) in which F1 teams compete.
look at each force and define at as an opportunity or a threat. Define
any offensive or defensive strategies.
8. Answer the following:
a) Do the teams want to stay in the industry in which they are
competing? why?
b) How can the teams protect themselves from industry threats?
c) What opportunities are created by trends in the industry?
d) Can the teams manipulate the industry the way they want?
e) How can Ferrari, McLaren, Williams become/maintain industry
leadership?
9. Who are the principle players in the industry? which firms will be
winners in the future? How are successful firms positioning
themselves? How sustainable is their dominance? What type of rivalry
is present?
10. What role distribution and logistics play in the teams strategy?
11. Are acquisitions/mergers or other factors changing the ownership
patterns in the industry? Should strategic Alliances or spin-offs be
considered? How? why? What can they acheive strategically? what is the
significance of being a part of Formula 1? What synergies exist or
can be created?
12. How significant are changes in environmental constraints affecting
the industry? include ( for example) political, technological,
economic, physical, legislative, demographic, age profiles, trade
unions, skill levels and/or whatever else u see fit.
13. What technological or other developments are affecting products/
service development, cash management, procurement, marketing, and
logistics, sales and after sales, systems, people management.
14. what changes are taking place in customers' demand patterns? Are
new markets segments developing? ( or capable of being created). Are
existing markets changing their buying behaviour?
15. Can you identify any particular financial strategies in the
industry and how well are the teams placed in pursuits of their
financial strategy?
16. What are the required key industry competencies and resources? Can
the teams match them?
From this, form some ideas about what is happening in the industry.
Conclusion Phase:
Capture ALL ideas that have emerged and categorise into four areas.
Category 1: Improvement Ideas ( enhancing what the teams do now)
Category 2: opportunities ( ideas the team could exploit)
Category 3: threats (hazards to growth, security and profitability)
Category 4: Uncertainties ( Issues that need further analysis)
Bringing it all together complete your assignment by writing three
100- word scenarios.
1. Likely Scenario
2. Pessimistic Scenario
3. Optimistic Scenario |
